What changed
Previously, banks required fresh address proof when transferring an account to another branch. Now, banks can transfer accounts based on a self-declaration of current address, with proof to be submitted within six months. Additionally, registered rent agreements are now accepted as valid address proof.
What it means for you
This reduces friction for customers relocating for jobs or other reasons, allowing them to continue banking without delays. Banks must update their KYC policies to accept self-declarations and rent agreements, and ensure customers are informed about the two-week notification requirement for address changes.
What you must do
- Update your bank's KYC policy to allow account transfers based on a self-declaration of address, with proof required within six months.
- Accept registered rent agreements as valid address proof for KYC purposes.
- Inform customers that they must notify the bank of any address change within two weeks, and obtain an undertaking to this effect during account opening and periodic KYC updates.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Customers with transferable jobs or those relocating
What documents are now acceptable as proof of address for account transfers?
In addition to existing documents, a registered rent agreement with the State Government or similar authority is now acceptable. Also, a self-declaration of address is sufficient initially, with proof to be submitted within six months.
How long do customers have to submit proof of address after a self-declaration?
Customers must submit valid proof of address within six months of the self-declaration made at the time of account transfer.
What is the customer's obligation regarding address changes?
Customers must inform the bank of any change in address within two weeks of such change. Banks should obtain an undertaking to this effect when opening new accounts or during periodic KYC updates.